Chapter 11 – Building a Customer-Centric Organization – Customer Relationship Management

Customer Relationship Management (CRM)

v  CRM enables an organization to:

·         Provide better customer service

·         Make call centres more efficient

·         Cross sell products more effectively

·         Help sales staff close deals faster

·         Simplify marketing and sales processes

·         Discover new customers

·         Increase customer revenues

Recency, Frequency, and Monetary Value

v  Organizations can find their most valuable customers through “RFM” – Recency, Frequency, and Monetary value

·         How recently a customer purchased items (Recently)

·         How frequently a customer purchased items (Frequency)

·         How much a customer spends on each purchase (Monetary Value)

The Evolution of CRM

v  CRM reporting technology – help organizations identify their customers across other applications

v  CRM analysis technologies – help organization segment their customers into categories such as best and worst customers

v  CRM predicting technologies – help organizations make predictions regarding customer behaviour such as which customers are at risk of leaving

 

 

 

 

 

 

 

 

 

 

 

Using Analytical CRM to Enhance Decisions

v  Operational CRM – supports traditional transactional processing for day-to-day front-office operations or systems that deal directly with the customers

 

v  Analytical CRM – supports back-office operations and strategic analysis and includes all systems that do not deal directly with the customers

 

 

 

Customer Relationship Management Success Factors

v  CRM success factors include:

 

1.       Clearly communicate the CRM strategy

2.       Define information needs and flows

3.       Build an integrated view of the customer

4.       Implement in iterations

5.       Scalability for organizational growth